2019 Self Insured Resolutions – Looking Back To 2018 2017 2016

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2019 Self Insured Resolutions Come From Prior Years

The 2019 Self Insured Resolutions analysis follows the same path as the voluntary market 2019 resolutions published last week.   

picture 2019 self insured resolutions fireworks Sydney AU
Public Use License – Rob Chandler

Follow these links back to look those over for your 2019 resolutions:  

The 2019 Self insured resolutions are modifications to the 2018 Resolutions.   In other words, did you do the 2016 – 2018 resolutions?  The 2017 and 2018 Self Insured Resolutions were:

2017 Resolutions – Still important

  1. Obtain and know your LDF (Loss Development Factor)  – still as important as ever.  If you do not know where you are on the map, how can you find your way anywhere?  
  2. Working relationship with adjusters – the adjusters are spending directly out of a budget or bank account.  Communicating by email (see #3) lets the adjusting staff know that your company follows the workers compensation payouts very closely
  3. Use email – not phone calls
  4. Conquer Your TPA expenses – Self Insureds are sounding off on this one in late 2018 and early 2019.  Many of our potential and current clients have taken notice of their sharply increased TPA expenses.  Do not ignore this area!
  5. Watch the Learning Curve for Accident Spikes – when the economy increases, so do claims.  The increases are a natural result of more work hours.  Safety becomes even more important.  
  6. Use online access when available
  7. Attend A Workers Comp or Safety Conference 
  8. Subscribe to our weekly Newsletter
  9. Obtain Your Loss Runs – you have these at your fingertips, right?  If not,  you are not following your claims closely enough to make an impact.
  10. Write an article on Workers Comp

 2018 Resolutions – Finish these up

You did these in 2018, No, then what are you waiting on to Cut Your Comp Costs and fulfill your 2019 self insured resolutions?

  1. Not being Self Insured is an option.  Employers need to have a large amount of cash or equity on hand to handle claims.  Reinsurance can only do so much if your company has a bad claims year or two. 
  2. Construct a Request For Proposal (RFP) – See #4 in the 2017 Resolutions.  An RFP remains a great risk management technique to control TPA expenses.  
  3. Unbundle your required vendor services with multiple RFPs – still, a great method to save on claim expense payments. 
  4. Ad-hoc print your loss runs – you did obtain this ability from your TPA?  No? then do something about it now.
  5. Working relationship with adjusters – a self insured must do this from day one with their respective TPA’s adjusters.  You do know their name, right?  If not, find that out this week.  
  6.  Each state in which you operate has its own set of minimum rules for being self-insured – for companies considering becoming self insured.   One very common minimum is $500,000 of liquid assets in that state.   You cannot have just $1.3 million in your HQ state and count that asset figure in every state of your operation.  Each and every state must have the $500,000 (Ouch!)
  7. An alternative to LDF’s – Loss Development Factors is SynthMods(R).   We calculate those for self insureds.  They are basically E-Mods instead of LDF’s.  SynthMods rate your company with the Experience Mods like you were still in a regular workers comp policy.   They are an alternative to LDF’s.   I am calculating one now for a self insured governmental agency.   
  8. Understand all your TPA expenses.  That is a holdover from above 2017 resolutions.  Why does this one appear twice?  Self insureds have become very aware of increasing TPA expenses – these also include the vendors the TPA uses if you have not chosen your own vendors.   
  9. Take your self insured program in- house.   A very tough choice.  The final result is a sharp reduction in claims handling and payment budgets.  Watch the Law of Large Numbers here.   You need to have a large workers comp budget to do the claims in-house.   
  10. Go back and read all the resolutions I have written.  Even if the resolutions are not specifically for self insureds, you can glean great information.  The resolution search is here.
  11. Bonus – Full online access to your claims – you did obtain full access.  No? Then contact your TPA today. 

There are many more resolutions which could be added to the list.   The bottom line is your company needs to stop and make sure all the bases are covered using the 2016 – 2018 resolutions.   Yes, a serious 2016 – 2018 resolution review equates to having finished your 2019 self insured resolutions. 

 

©J&L Risk Management Inc Copyright Notice

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James Moore

Raleigh, NC, United States

About The Author...

James founded a Workers’ Compensation consulting firm, J&L Risk Mgmt Consultants, Inc. in 1996. J&L’s mission is to reduce our clients’ Workers Compensation premiums by using time-tested techniques. J&L’s claims, premium, reserve and Experience Mod reviews have saved employers over $9.8 million in earned premiums over the last three years. J&L has saved numerous companies from bankruptcy proceedings as a result of insurance overpayments.

James has over 27 years of experience in insurance claims, audit, and underwriting, specializing in Workers’ Compensation. He has supervised, and managed the administration of Workers’ Compensation claims, and underwriting in over 45 states. His professional experience includes being the Director of Risk Management for the North Carolina School Boards Association. He created a very successful Workers’ Compensation Injury Rehabilitation Unit for school personnel.

James’s educational background, which centered on computer technology, culminated in earning a Masters of Business Administration (MBA); an Associate in Claims designation (AIC); and an Associate in Risk Management designation (ARM). He is a Chartered Financial Consultant (ChFC) and a licensed financial advisor. The NC Department of Insurance has certified him as an insurance instructor. He also possesses a Bachelors’ Degree in Actuarial Science.

LexisNexis has twice recognized his blog as one of the Top 25 Blogs on Workers’ Compensation. J&L has been listed in AM Best’s Preferred Providers Directory for Insurance Experts – Workers Compensation for over eight years. He recently won the prestigious Baucom Shine Lifetime Achievement Award for his volunteer contributions to the area of risk management and safety. James was recently named as an instructor for the prestigious Insurance Academy.

James is on the Board of Directors and Treasurer of the North Carolina Mid-State Safety Council. He has published two manuals on Workers’ Compensation and three different claims processing manuals. He has also written and has been quoted in numerous articles on reducing Workers’ Compensation costs for public and private employers. James publishes a weekly newsletter with 7,000 readers.

He currently possess press credentials and am invited to various national Workers Compensation conferences as a reporter.

James’s articles or interviews on Workers’ Compensation have appeared in the following publications or websites:

  • Risk and Insurance Management Society (RIMS)
  • Entrepreneur Magazine
  • Bloomberg Business News
  • WorkCompCentral.com
  • Claims Magazine
  • Risk & Insurance Magazine
  • Insurance Journal
  • Workers Compensation.com
  • LinkedIn, Twitter, Facebook and other social media sites
  • Various trade publications

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